- Analytics
- News and Tools
- Market News
- EUR/USD: Dollar sell-off unlikely to be sustained – MUFG
EUR/USD: Dollar sell-off unlikely to be sustained – MUFG
Analysts at MUFG Bank, have the idea of a shorting the EUR/USD pair around 1.0290 with a target at 0.9900 and a stop-loss at 1.0540. They consider that European circumstances create uncertainty for the euro and market participants could start pricing in more tightening from the Federal Reserve.
Key Quotes:
“We are sceptical of the scope to move further to the upside in circumstances of still high levels of uncertainty over the near-term outlook for growth in Europe due to the declining supply of natural gas.”
“For the US dollar generally, the sell-off this week in our view will not be sustained. It is much too early for the Fed to pivot and comments from Fed officials since the CPI data suggests a determined Fed that want to tighten a lot further before signalling to the market any sense of a change in stance. The rebound in the equity markets will likely make the Fed more determined to hike aggressively.”
“The Jackson Hole gathering will likely be used to signal the Fed’s determination and with another jobs report and CPI report before the FOMC meeting in September, the market could soon start to price in more tightening over the course of the remainder of this year.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
